Buying & Selling Real Estate Discussion

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Tyler Ruff
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I think I found my first deal— seeking advice from folks here!

Tyler Ruff
Posted Oct 7 2019, 20:18

Okay. I read Brandon Turners book on rental property investing. I've been scanning zillow and zillow rentals for starters and using the "50% test" to quickly rule things out. In Utah right now prices are kinda crazy and nothing seems like it will cashflow on day 1, even using a "30% test". Here's what I found:

  • Mobile home listed for $45k. 3beds, 2bath, 924 sqft.
  • I can see similarly sized APARTMENTS and HOUSES in the surrounding blocks listed for rent at around $1k/month— but no other MOBILE HOMES for rent. Maybe there's a reason?
  • Planning to put 20% down, making the mortgage $36k, bringing the payment to $200/month
  • Home was built in 1984. Listing says new roof and appliances and "owner will provide a flooring allowance". Shed and all contents are included (lawn mower, yard equipment, etc)
  • Been owned by the same guy for 20 years. Says he's not open to seller financing :(
  • Using the "50% test" described in Brandon's book, that makes for half the rent being saved for all expenses.

So, check my rough math? what am I missing? 

  • $700/month, all expenses paid
  • Rent for $1,000 means $300 cashflow on day 1, right? Wrong?

Thanks in advance for looking and for your advice!

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